The festival board said the pressure had become “intolerable”, and, as a result, believe their ability to deliver an event this August that is safe and successful for audiences, authors and staff has been severely compromised.

Festival CEO Jenny Niven said: “The pressure on our team has simply become intolerable. We have a major global festival starting in 10 weeks’ time and we need to focus all of our efforts and energy on delivering a safe and successful event for our audiences.”

She added: “Undermining the long-term future of charitable organisations such as book festivals is not the right way to bring about change.”

“It diminishes the voices of those who feel strongly about these complex issues, and it will be infinitely harder to build and sustain well-funded cultural institutions in the future than it is to put them out of business today.”

Calling out to festival supporters, Ms Niven emphasised her belief “that Baillie Gifford is part of the solution in transitioning towards a more sustainable world” pointing out that the investment firm meets the standards of the festival’s ethical fundraising policy.

Allan Little, chair of the Edinburgh International Book Festival, echoed the sentiment, saying: “Our team cannot be expected to deliver a safe and sustainable festival this August under the constant threat of disruption from activists. This was a pragmatic response to that reality.

“Funding for the arts is now in a perilous position and we should all be clear that without the support of our partners and donors, the future of festivals like ours – and all of the benefits these events bring to authors and readers alike – is in jeopardy.”

He expressed disappointment that activist groups had not accepted invitations to participate in the festival’s programme, saying the festival “provides an important platform for authors and readers of all views and political opinions to agree, disagree, challenge, and provoke”.

Mr Little continued: “Book festivals around the world are forums in which rigorous, intelligent debate can take place. Our festival should be a place where progressive and nuanced discussion can happen in a safe and respectful space.

“Indeed, our programme this year is designed to give a voice to those directly affected by conflict and those engaged at the most senior levels in its resolution. We will explore the real challenges involved in transition, green tech and climate finance, misinformation and the need for new economic models.

“We are determined to have those debates and to have them out in the open, but we need everyone to come to the table. We have made several invitations to Fossil Free Books, and other groups, to attend this year’s festival and regret that they have not responded to those offers.”

Baillie Gifford partner Nick Thomas branded the activists’ anonymous campaign as one “of coercion and misinformation”, emphasising the firm’s ethical standards and commitment to the community.

Mr Thomas said: “We step back with the hope that the festival will thrive this year and into the future. We hold the activists squarely responsible for the inhibiting effect their action will have on funding for the arts in this country.”

He added: “The assertion that we have significant amounts of money in the Occupied Palestinian Territories is offensively misleading.

“Baillie Gifford is a large investor in several multinational technology companies, including Amazon, NVIDIA, and Meta. Demanding divestment from these global companies, used by millions of people around the world, is unreasonable and serves no purpose. Much as it would be unreasonable to demand authors boycott Instagram or stop selling books on Amazon.”

He noted that the firm is neither “a significant fossil fuel investor”, stating that “only 2% of our clients’ money is invested in companies with some business related to fossil fuels”, with far more invested “in companies helping drive the transition to clean energy”. An earlier statement released by Baillie Gifford pointed out this compares “to the market average of 11%”.

This year’s Edinburgh International Book Festival will take place from 10 to 25 August, with the full programme due to be launched next week. Baillie Gifford has supported the Edinburgh International Book Festival since 2004. The firm’s funding for this year’s book festival has already been provided and deployed.